New Zealand Court Ruling a Setback for Kim Dotcom

A New Zealand appeals court has delivered a legal setback to Kim Dotcom, the Internet entrepreneur fighting the U.S.'s largest ever copyright case, overturning a decision by a lower court that search warrants used to gather information in the case against him were invalid.

The country's Court of Appeal on Wednesday said the warrants used to seize some 135 electronic items from Mr. Dotcom, the German founder of online storage site Megaupload.com, and his associate Bram van der Kolk more than two years ago were lawful. The...